The Biden administration has worked overtime to gaslight Americans into believing everything is totally fine when, in fact, everything is not fine. As a matter of fact, it’s getting worse by the day. And by “it’s,” I mean everything is going south.
The latest indication of yet another looming economic crisis — and no, I’m not talking about the developing housing crisis, the diesel fuel crisis, the home heating oil crisis, the inflation crisis, or the illegal immigration crisis — was revealed in a startling report this week regarding total household credit card debt, which has now increased by the most in 20 years, rising a staggering 15% from last year.
The crazy part? The debt has increased at record levels even as interest rates have been pumped higher by the Fed over the past several months.
In other words, under President Joe Biden’s grossly failing economy, many of us are being forced to use available credit — even at record-high interest rates — to buy the things we’ve always bought. Nobody’s buying extra stuff.
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This is a direct result of savings accounts being drained because of Bidenflation. We’ve simply run out of cash. And good luck trying to liquidate your fun, expendable assets, like boats, motorcycles, and RVs, because most people can’t afford to buy them.
From CNBC:
The credit card balance collectively rose more than 15% from the same period in 2021, the largest annual jump in more than 20 years, according to the New York Fed, which released the report. The increase “towers over the last eighteen years of data,” a group of Fed researchers said in a blog post on the central bank site.
“Credit card, mortgage, and auto loan balances continued to increase in the third quarter of 2022 reflecting a combination of robust consumer demand and higher prices,” said Donghoon Lee, economic research advisor at the New York Fed. “However, new mortgage originations have slowed to pre-pandemic levels amid rising interest rates.”
In its report, the New York Fed failed to properly blame President Biden and the Democrats’ never-ending, crippling spending bills that poured gas on the inflation issue, but that’s to be expected.
If Americans are already tapping into credit card reserves because their savings ran dry, how long will that be viable? The answer is not long. Combine that situation with the heating oil and energy crises, which people already can’t afford, and also take note that winter hasn’t even started yet. It’s a nightmare in the making.
It also reported that “delinquencies” are also rising as a result (you don’t say?) but said they don’t look out of the ordinary… yet. Believe me, when people run completely out of money and assets by February, the delinquencies will jump off the charts, and we’ll have a real conundrum on our hands.
Below is a quick primer on the situation as it stands, which is still in its infancy.
Economic update:
1. Rates on credit card debt now highest since 1990
2. Credit card debt at record $930 billion
3. Mortgage balances up $1 trillion this year
4. Average mortgage rate of 7.2% higher than 2008
5. US household debt at record $16.5 trillion
A recession awaits.
— The Kobeissi Letter (@KobeissiLetter) November 17, 2022
Meanwhile — and I can’t stress to you enough that I wish I were making this up — in the White House’s Thanksgiving “talking points” list issued to liberal sheep this week that tout President Biden’s “accomplishments,” in the first paragraph, they brag that the price of hearing aids has gone down.
Here’s the list. And I agree, you should definitely take it to the family Thanksgiving dinner, as Chief of Staff and de facto President Ron Klain suggests, to provide an ample supply of deep, hearty laughs as you read the White House’s garbage list out loud.
One last item for your Thanksgiving dinner: some talking points when "that Uncle" comes "at you" about @POTUS. pic.twitter.com/P9X0wDRRZK
— Ronald Klain (@WHCOS) November 23, 2022
I’d like to end this by remaining optimistic about the future, but the truth is that until Republicans control the White House and Congress, this situation will continue to worsen. Sadly, that’s gonna be a few years, at best.
Biden and the radical left Democrats have us right where they want us, and believe me, they’re not interested in relinquishing that power anytime soon.
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